June 08, 2009

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There’s been a lot of speculation around the offices of Congressional Quarterly today that a deal was imminent to sell the Capitol Hill publication, but POLITICO has now learned there will not be an announcement Monday.

And while no buyer has emerged, three media companies that I reported having initially kicked the tires are no longer in the running, according to sources familiar with the bids: Bloomberg L.P., National Journal/ Atlantic Media, and (POLITICO parent-company) Allbritton Communications.

It’s not surprising that several media companies took a look at CQ’s books since going on the market in January, before deciding not to move on to the next round. Also, CQ isn’t being given away: a ballpark price currently being floated is around $100 million.

So that leaves Capitol Hill competitor Roll Call—part of the Economist Group—as the most likely media company still in the running.

Given that CQ and Roll Call overlap in some coverage areas, staffers are concerned that a deal would lead to streamlining and personnel cuts.

Also, if a deal happens, it would be interesting to see how power is divided among those at the top of the masthead. Ironically, Roll Call editorial director Mike Mills had once been passed over for the top editor’s job at CQ, and Roll Call’s publisher Peter Cherukuri previously worked at the Capitol Hill competitor.

Several executives at CQ and Roll Call declined requests for comment

Andrew Corty, vice president of parent-company Times Publishing, did not return calls. Mike Marchesano, managing director of Jordan Edmiston Group, the investment bankers handling the deal, did not return multiple calls since last week.

While Roll Call seems most likely, it's possible that a private equity firm could emerge.

One pitch to potential buyers was that since CQ's relationship with the non-profit Poynter Institute has been run by a non-profit, it may have been under-managed all these years, according to one news executive with knowledge of the bidding process.

Bob Merry, CQ's editor-in-chief, told staffers in January that a deal would probably be done by third quarter of 2009. So for a deal to close in the fall, a buyer would need to emerge soon.

UPDATE: I should have been clear that CQ is a for-profit company owned by Times Publishing Company (publisher of the St. Petersburg Times), which is owned by the non-profit Poynter Institute.